Subject: Memorandum of Understanding (MOU) between the Miles City Field Office and

the Fort Peck Tribes under the Underground Injection Control (UIC) Program.

Program Area: Oil and Gas Program

Purpose: This Instruction Memorandum (IM) directs the Miles City Field Office to initiate an MOU between the Miles City Field Office and the Fort Peck Tribes for the UIC Program. The MOU is necessary because the Environmental Protection Agency (EPA) in a Federal Register Notice dated October 27, 2008, Volume 73, No. 208, Pages 63639 through 63647, approved the Fort Peck Tribes under section 1425 of the Safe Drinking Water Act (SDWA) to implement a UIC program for Class II (oil and gas-related) injection wells within the exterior boundaries of the Fort Peck Indian Reservation. This approval is effective November 26, 2008.

Policy/Action: The BLM has a trust responsibility for approving actions related to oil and gas operations on Indian oil and gas leases within the Fort Peck Indian Reservation. These also include Class II injection wells to ensure protection of Tribal or Allotted mineral resources on the Fort Peck Indian Reservation.

The Miles City Field Office is directed to initiate an MOU to define the roles and responsibilities between the BLM and the Fort Peck Tribes concerning permitting, inspection and plugging procedures for Class II injection wells within the exterior boundaries of the Fort Peck Indian Reservation. The language in the MOU with the Fort Peck Tribes should closely follow the language in the MOUs with the EPA (Attachment 1) and the Montana Board of Oil and Gas Conservation (MBOGC) (Attachment 2) regarding Class II injection well programs. After the MOU is signed, it should be sent to the affected operators so they understand the roles and responsibilities of the BLM and the Fort Peck Tribes.

Timeframe: Initiate within 30 days of receipt of this IM.

Budget Impact: None.

Background: The EPA is responsible for administering the UIC program. The EPA granted primacy approval to the MBOGC under the UIC program for all wells within the state of Montana except for those wells within Indian country. The EPA retained primacy over those wells. The Montana State Office has existing MOUs with both the EPA and the MBOGC. The purpose of the MOU is to define the roles and responsibilities between the agencies concerning permitting, inspection and plugging procedures for Class II injection wells under BLM jurisdiction.

Manual/Handbook Sections Affected: None.

Coordination: Preparation of the IM was coordinated with the Miles City Field Office.

Contact: Please direct any questions to Will Lambert at (406) 896-5328.